Asked by Ebenezer Akinoluyemi on Jul 21, 2024
Verified
Total fixed cost (TFC)
A) falls as the firm expands output from zero, but eventually rises.
B) falls continuously as total output expands.
C) varies directly with total output.
D) does not change as total output increases or decreases.
Total Fixed Cost
The sum of all costs that remain constant regardless of the level of production or business activity.
Output
The total amount of goods and services produced by a company, sector, or economy.
Total Output
The total quantity of goods and services produced by an economy or firm during a specific period.
- Comprehend the effects of variations in fixed expenses on average fixed expenditures and aggregate costs.
Verified Answer
GD
Giselle DelgadoJul 21, 2024
Final Answer :
D
Explanation :
Total fixed cost (TFC) does not change with the level of output. Fixed costs are expenses that have to be paid by a company, independent of any specific business activities.
Learning Objectives
- Comprehend the effects of variations in fixed expenses on average fixed expenditures and aggregate costs.